The Client:
A US-based accounts payable automation company with customers across industries including hospitality, accounting firms, construction companies, country clubs, etc.
Scope of Work
Complete support with accounts payable functions.
Process Bottlenecks
Fragmented procurement processes across the US delayed vendor payments. Duplicate payments were another issue, with around 25-30% of payments falling under the ‘duplicates’ category.
This resulted in about $1.3Mn being blocked every month subject to return validations by vendors, thereby severely affecting the working capital position and decision-making ability of the business.
Cogneesol’s Optimization Solution
We leveraged our accounts payable domain experts to embark on step-by-step due diligence and diagnostic process. The team, with help from the client’s staff, first consolidated and standardized the payables operations across all the US locations from where invoices come in. This led to significant process redesign, supported by technology changes both at the client end and at our end in Cogneesol. The team listed down further corrections in the invoice processing procedure that led to the saving of document downloading time.
The centralized and standardized operations eliminated process redundancies and increased productivity leading to significant improvements in turnaround time in the areas of invoice exceptions, payments, and vendor management.
Thanks to Cogneesol’s accounting experts, we do not have any more payables backlogs. Plus, all our payments are on time, our vendors are happy. The team is efficient and they are domain experts who bring changes without wasting time and resources!
Impact Delivered
Changes in the operating model led to streamlining of accounts payable function with real-time invoice processing and improved vendor management.
On-time payment of invoices in the US increased to 75 percent. Cost savings of 25% plus due to elimination of duplicate invoices and the funds of around $1.3Mn being channelized in the required direction.
Client Testimonials
It is always a pleasure to learn that the work we do has positively impacted our clients and that they are happy to share their experiences.
We had inherited legacy systems from a recent acquisition. Cogneesol helped us migrate our processes from the outdated systems to the ones used across the organization and streamlined them in a matter of months. Thanks to them, our processes are now lean and efficient, making our team many times more productive than previously.
We have been witnessing a rise in insurance claims owing to the COVID-19 global pandemic. To tackle it, Team Cogneesol has been adapting with us to changed ways of working with their reliable insurance back-office support, helping us in the timely handling of 100% of the claims. Despite the difficult times, we have been able to retain our customers’ trust. Much of the credit belongs to Cogneesol!
Cogneesol provided us customized insurance BPO services and helped us reduce our field inspection cycle by identifying processes that could be accomplished digitally by the claimant as well as the field officers. Additionally, their self-service app has brought down inspection costs significantly and has dramatically improved our claim servicing timelines. Thank you Cogneesol for making us so efficient.
We used to suffer from huge volumes of duplicate invoices and missed vendor payments. Cogneesol streamlined our Accounts Payable process by centralizing data, eliminating data entry, and streamlining the invoice workflow. This has not only eliminated the problem of duplicate invoices but has also standardized the payment system and has regulated our working capital management, making us financially stronger and in-control of our operations.
We automated our Accounts Payable division with the help of Cogneesol’s team of qualified accountants. They came in with game-changing process improvements, including the elimination of data-entry errors with automated OCRs, the establishment of a ‘No PO No Pay’ policy, ensuring a system of timely payments, and elimination late fees. All of these have changed the face of our AP books. We are now in a great position to make strategic decisions.
Cogneesol increased our operational efficiency with timely payments and efficient management of our working capital. We are impressed with the dedication of the team and their professionalism. Most importantly, the team is professionally qualified and has the technical expertise to guide the accurate and compliant management of the payables process. Thanks to them, we have a non-manual AP function that functions seamlessly and has brought us significant cost savings.
